! Required information [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,600 units at $300 each) Variable costs (10,600 units at $240 each) Contribution margin Fixed costs Income 1. Assume Hudson has a target income of $172,000. What amount of sales (in dollars) is needed to produce this target in 2. If Hudson achieves its target income, what is its margin of safety (in percent)? Note: Round your answer to 1 decimal place. 1. Dollar sales for target income 2. Margin of safety $ 3,180,000 2,544,000 636,000 480,000 $ 156,000 %
! Required information [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,600 units at $300 each) Variable costs (10,600 units at $240 each) Contribution margin Fixed costs Income 1. Assume Hudson has a target income of $172,000. What amount of sales (in dollars) is needed to produce this target in 2. If Hudson achieves its target income, what is its margin of safety (in percent)? Note: Round your answer to 1 decimal place. 1. Dollar sales for target income 2. Margin of safety $ 3,180,000 2,544,000 636,000 480,000 $ 156,000 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
[The following information applies to the questions displayed below.]
Hudson Company reports the following contribution margin income statement.
HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Sales (10,600 units at $300 each)
Variable costs (10,600 units at $240 each)
Contribution margin
Fixed costs
Income
$ 3,180,000
2,544,000
636,000
480,000
$ 156,000
1. Assume Hudson has a target income of $172,000. What amount of sales (in dollars) is needed to produce this target income?
2. If Hudson achieves its target income, what is its margin of safety (in percent)?
Note: Round your answer to 1 decimal place.
1. Dollar sales for target income
2. Margin of safety](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F063683ca-3f8f-4ea9-aad2-4f6be390f41d%2F1c7c81f5-a059-48b9-a58f-a298f428a430%2Fbk3d08_processed.png&w=3840&q=75)
Transcribed Image Text:●
Required information
[The following information applies to the questions displayed below.]
Hudson Company reports the following contribution margin income statement.
HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Sales (10,600 units at $300 each)
Variable costs (10,600 units at $240 each)
Contribution margin
Fixed costs
Income
$ 3,180,000
2,544,000
636,000
480,000
$ 156,000
1. Assume Hudson has a target income of $172,000. What amount of sales (in dollars) is needed to produce this target income?
2. If Hudson achieves its target income, what is its margin of safety (in percent)?
Note: Round your answer to 1 decimal place.
1. Dollar sales for target income
2. Margin of safety
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